17 July 23
Realtors Plan to Use Most Land Parcels for Housing Projects
Mumbai: The ongoing upcycle in the housing market segment is prompting more real estate developers to opt for and propose residential developments on their land parcels that are already part of their land banks or are being acquired now. Most land parcels acquired by the developers across the country in the last 18 months have been added to their residential development pipeline, which is an indication of augmented capex utilisation aimed at clocking higher sales in the upcoming quarters.
Out of the total 2,181 acres of land transacted between January 2022 and May 2023, around 84%, or 1,822 acres, have been allocated for proposed residential developments, according to data from JLL India.
The Indian real estate sector is on an upswing, with domestic consumption propelling demand for the long run in the mid- and luxury segments,” said Niranjan Hiranandani, national vice chairman, Naredco. “Developers are geared for active land acquisition across metro and tier cities, capitalising on last-mile connectivity. The new infrastructure projects will become the fulcrum of economic growth corridors, and developers are building boom-bust project pipelines in anticipation of demand.”
Driven by unprecedented sales, new residential projects are expected to gain further strength through strategic land acquisitions in key locations and growth corridors. In the second half of 2023, the number of launches is expected to rise as developers continue to expand their land banks, capitalising on expected interest rate moderation, growing housing demand, and support from institutional funding agencies. However, experts are of the view that developers with an execution and delivery track record are expected to get an advantage in terms of demand and sales conversion as homebuyers would prefer their projects.
“The residential property play is being dominated by a few national brands and select developers in each geography where they have preferred the strategy to consolidate positions in respective domestic markets,” said Said Nishant Kabra, senior director, India capital markets, JLL.
LAUNCHES TO RISE
In the second half of 2023, the number of launches is expected to rise as real estate developers continue to expand.
Source – The Economic Times